Below is a list of the top 5 things to remember when carrying out a company formation.
1) Have a plan
It might be bit cliché to say it, but if you fail to plan then you’re planning to fail. This applies in all walks of life, especially business. Before you even think about getting started with a company formation you need to draw up a business plan. Work out what your business is going to do, how it will operate, who your target market is, how much money you will make and how much funding you need to get started. Having a plan is the first step on the path to success. It is also an essential way to keep your business on track in the future, monitoring progress and keeping an eye on your business goals and your budget. The contents of a business plan are another article by itself, but it certainly deserves top slot on this list.
2) Choose an appropriate company name
Another essential element of company formation is the proper selection of a company name. It’s important to choose a company name which – suits the business, works well in terms of marketing, is memorable and stands out from the crowd, isn’t offensive, abides by the rules surrounding sensitive words and isn’t already on the Companies House register or in use by another business. Take a look at our article(s) on choosing a company name for more information and tips.
3) Choosing the right legal form
For a large number of businesses in the UK, choosing to form a private limited company is the best options. There are a number of advantages of a limited company which make it the most appealing and beneficial form of business. There are however, other legal entities which might be preferable in certain circumstances. For example, a company limited by guarantee is a better choice for a company seeking to start a charitable organisation. Take a look at our article on the different forms of business or pop over to the Business Link website if you are still unsure on the best model for your business.
4) Know your legal obligations
When starting a new company, it’s important to know what is legally required of you. There are several tax obligations, legal requirements and accounting requirements which will become an essential part of running a new limited company. If you don’t do what’s required then you risk facing fines, penalties and in some extreme cases, criminal charges. If you take a look around this blog and the pages on our website, you will find guidance on how to satisfy your legal requirements and obligations and avoid unnecessary fines. As a company formation agent, we are keen to see businesses succeed and we’ll do our best to ensure you get the best start possible.
5) Seek help
Company law can be a complex thing. Generally speaking, most people don’t know how to go about carrying out a company formation. This is exactly why company formation agents exist. In our recent article DIY Verus Using a Company Formation Agent, I demonstrated that it is actually cheaper and quicker to start a limited company using a formation agent. There’s no shame in seeking help. With guidance and a helping hand, you can rest assured in the knowledge of a secure company formation of a new, tax efficient company, in just a few hours.